Eversource Energy

DB:NWJ Stock Report

Market Cap: €21.4b

Eversource Energy Valuation

Is NWJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NWJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NWJ (€57.5) is trading below our estimate of fair value (€95.11)

Significantly Below Fair Value: NWJ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NWJ?

Key metric: As NWJ is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NWJ. This is calculated by dividing NWJ's market cap by their current revenue.
What is NWJ's PS Ratio?
PS Ratio1.9x
SalesUS$11.62b
Market CapUS$22.53b

Price to Sales Ratio vs Peers

How does NWJ's PS Ratio compare to its peers?

The above table shows the PS ratio for NWJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
EBK EnBW Energie Baden-Württemberg
0.4xn/a€17.5b
LEC Lechwerke
2xn/a€2.5b
RWE RWE
1x4.4%€23.7b
EOAN E.ON
0.5x4.9%€30.4b
NWJ Eversource Energy
1.9x5.7%€22.5b

Price-To-Sales vs Peers: NWJ is expensive based on its Price-To-Sales Ratio (1.9x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does NWJ's PS Ratio compare vs other companies in the European Electric Utilities Industry?

16 CompaniesPrice / SalesEstimated GrowthMarket Cap
NWJ 1.9xIndustry Avg. 0.9xNo. of Companies16PS00.40.81.21.62+
16 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NWJ is expensive based on its Price-To-Sales Ratio (1.9x) compared to the European Electric Utilities industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is NWJ's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NWJ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.9x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: NWJ is expensive based on its Price-To-Sales Ratio (1.9x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NWJ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€57.50
€70.06
+21.8%
7.1%€82.75€62.78n/a17
Nov ’25€60.50
€69.38
+14.7%
8.4%€87.15€61.19n/a17
Oct ’25€61.00
€66.75
+9.4%
8.6%€84.92€59.62n/a17
Sep ’25€60.00
€65.77
+9.6%
8.9%€84.87€55.98n/a18
Aug ’25€60.00
€64.28
+7.1%
10.9%€87.11€52.82n/a18
Jul ’25€52.50
€63.41
+20.8%
11.4%€87.54€53.08n/a18
Jun ’25€53.00
€63.10
+19.0%
11.6%€86.55€52.48n/a17
May ’25€56.00
€62.74
+12.0%
12.9%€88.25€46.94n/a18
Apr ’25€54.00
€60.57
+12.2%
13.1%€85.88€45.68n/a17
Mar ’25€54.00
€61.10
+13.1%
13.2%€86.87€46.21n/a17
Feb ’25€50.00
€60.24
+20.5%
14.2%€86.72€46.13n/a17
Jan ’25€56.00
€60.35
+7.8%
13.5%€85.95€45.72n/a17
Dec ’24€54.00
€59.56
+10.3%
14.1%€85.67€45.57n/a17
Nov ’24€50.50
€64.02
+26.8%
17.0%€89.04€47.36€60.5017
Oct ’24€54.00
€73.32
+35.8%
9.2%€88.29€62.93€61.0016
Sep ’24€58.50
€73.68
+25.9%
10.4%€92.53€62.00€60.0016
Aug ’24€65.50
€74.66
+14.0%
10.3%€91.05€62.82€60.0015
Jul ’24€64.00
€77.23
+20.7%
11.0%€94.87€64.77€52.5015
Jun ’24€64.50
€80.91
+25.4%
9.4%€96.95€68.98€53.0015
May ’24€70.50
€79.40
+12.6%
8.6%€94.17€67.01€56.0016
Apr ’24€71.50
€80.55
+12.7%
8.9%€95.88€68.22€54.0016
Mar ’24€70.50
€83.17
+18.0%
8.4%€98.09€69.80€54.0017
Feb ’24€75.50
€82.13
+8.8%
8.0%€95.67€68.07€50.0018
Jan ’24€80.00
€82.52
+3.2%
9.0%€97.96€69.70€56.0018
Dec ’23€79.00
€81.75
+3.5%
9.0%€98.80€69.35€54.0018
Nov ’23€77.00
€86.05
+11.8%
9.5%€102.36€73.26€50.5018

Analyst Forecast: Target price is less than 20% higher than the current share price.

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